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Suppose you have $740 to invest in an account that earns 9 percent each year. How much money will you have after 8 years ? (round to the nearest penny.)

 Apr 10, 2020
 #1
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The exponential growth formula states that a(1+r)^t, where a is the initial amount, r is the ratio, t is the time.

Filling in the values, we have 740(1+0.09)^8=740(1.09)^8=1474.50.

 Apr 11, 2020
 #2
avatar+23623 
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Just in case this is simple interest (meaning the interest is not compounded yearly)

 

Final Value = 740 +  740 (.09)(8) = 740+740*.09*8 = $ 1272.80

 Apr 11, 2020

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